In a research note published on Monday, UBS announced that it has initiated coverage of Fifth Third Bancorp (NASDAQ:FITB) stock with a Buy rating, and a price target of $22. The sell-side firm sees high potential in the bank, as it has managed to improve its efficiency ratio over this difficult period, making the firm more confident in the bank management's ability to deal with difficult situations.

Even with consequential negative revenue growth for last two years, the firm is confident on its revival, forecasting $5.99 billion in revenue for the upcoming year, slightly above the last reported revenue of $5.94 billion. The sell-side firm holds high expectations for the company, expecting revenue of $7.07 billion in 2017.

UBS analyst, David Eads supported the strategy of Cincinnati, Ohio-based bank to provide a full suite of products to mid-corporate clients. He commented: “Given the intense competition across commercial lending markets, we see the strategy of delivering a full suite of products to mid corporate clients as an attractive niche.”

Mr. Eads believes that, despite the earnings headwinds in 2015, the bank is likely to report positive results in the year. He estimated 2015 earnings per share (EPS) of $1.69, with revenue of $5.992 billion. The firm is confident that the stock will exhibit long-term growth, forecasting 2016 EPS of $1.90 with revenue of $6.297 billion, increasing to EPS of $2.87 with revenue of $7.487 billion in 2019.

Out of the analysts who cover the stock, 16 rate it a Buy, 18 recommended a Hold, and two advocated a Sell. The stock is trading down by 0.36% at $19.44 as of 12:56 PM EST.

His partner told the newspaper he supports letting business tenants at Revel continue to operate in a re-opened casino. According to NJ.com, Straub wants to cancel existing leases.

Opposition from tenants has been a key obstacle to two previous sales that fell through.

Revel, which cost $2.4 billion to build, closed in September after little more than two years of operation.

This is another major twist in the tortured history of Revel, which had inked and lost two previous deals to sell it since it shut down. Straub last summer made an initial bid that set a floor for the bankruptcy court auction, at which it was outbid by Toronto-based Brookfield Asset Management.

Brookfield bid $110 million but bailed out of the deal in November because of the dispute over the power plant debt.

With Brookfield out of the way, Straub’s $95.4 million bid was the lone remaining offer for Revel, and both sides proceeded with that plan until Straub missed the Feb. 9 deadline to close.

Jack Broz from Broz On Bonds comes to MrTopStep with an update on the 5-yr Note futures contract.

Adjusted on: 3/2 5-Year Treasury Notes: This pivot (like 10s) is also helpful for our next direction…if the bulls can stabilize trade there it lets them work on 119.11 and 119.265…if the bears take it out, they will go after 118.20_2 which THEN becomes THE key price in the market.

The world’s largest market has attracted a series of major companies from a number of different industries lately, with the entertainment industry in particular witnessing a sharp rise. However, China is notorious for its stringent censorship laws and regulations, which have prevented a lot of companies from entering a country that comprises of approximately one-seventh of the world’s population.

Companies that enter China usually have to partner with a local company, not only to overcome cultural barriers but legal ones as well. As such, Netflix, Inc. (NASDAQ:NFLX) seems to be undertaking a bold step by entering the Chinese market alone. Netflix's chief content officer Ted Sarandos said: “It's unlikely that we would definitely pursue (a local partner model) as a strategy… These ventures become very complex and very difficult to manage, and ultimately difficult to be successful.”

Of China’s 649 million users, 60% of the audience uses smartphones and tablets to watch entertainment content, as per a source. This makes the company a very attractive prospect, but big names like Google Inc (NASDAQ:GOOGL), Youtube, Facebook Inc (NASDAQ: FB), and Twitter Inc (NYSE:TWTR) have all been blocked from the country, with China developing its own alternatives.

Netflix is likely to face a similar backlash as Chinese companies Alibaba Group Holding Ltd (NYSE:BABA) and Tencent Holdings (OTCMKTS:TCEHY) are investing heavily to push original content and bring foreign films and TV to China.

In addition, if Netflix goes alone like it plans to, the company will need to run about to get all the local licenses itself, which can be difficult. According to Sarandos, eight different licenses are required by Netflix to launch in China. He also said that TV was “subject to a censorship and regulatory environment that we haven't had to deal with.” This statement makes sense since popular names have tried to enter the market but have not been able to penetrate it.

The one factor that plays into Netflix’s hands is the fact that foreign TV shows that are to be screened in China require approval for the entire season before being allowed to broadcast online in the Oriental country. “House of Cards,” for example, without a doubt Netflix’s (and possibly recent television’s) most popular online series, releases the entire season all at once, unlike traditional shows. Since the entire season is first shot before being released, it will be much easier to get approval from Chinese audiences. “House of Cards” is already believed to be extremely popular in China.

Netflix produces “House of Cards” and “Marco Polo,” and hence is no stranger to releasing the entire season at once. It will be easier for the company to get the approval, but there are a ton of regulations that Netflix must conquer before it can properly enter the Chinese market.

The company hopes to eventually even export content produced in China to the rest of the world, which may sway the Chinese authorities in their favor. But with local rivals iQiyi and Tencent already streaming foreign shows, Netflix certainly has its work cut out.

CEOs of major U.S. companies said they are more optimistic than they were late last year that sales and capital spending will rise in the next six months, according to a survey by the Business Roundtable.

Their outlook for workers, by contrast, remains stagnant.

The survey, released Tuesday, found that 80% of 120 CEOs said they see sales increasing in the next six months. That’s up from 74% who said the same in the last quarter of 2014.

More CEOs, or 45%, also said they see capital spending increasing over the next two quarters. That’s up from 36% who said the same last quarter.

When it came to jobs, however, corporate leadership was less optimistic. Only 40% of the CEOs surveyed said they see jobs increasing in the next six months, the same percentage as before.

The Business Roundtable, a membership group that also advocates on public policy issues, interviewed 120 CEOs, or 59% of its membership, for its first quarter 2015 CEO Economic Outlook index.

NEW YORK (Reuters) – U.S. stocks fell on Tuesday, as the Dow and S&P retreated from their latest records and the Nasdaq dipped below 5,000 after scaling the milestone level for the first time in 15 years.

Good Morning – Today is series s4L and the SPILL is UP. On the nano, none of the counts on the 10 min SPX chart yesterday is DEAD. The Bears dropped the soap on their whack at the pinata for the day when they failed to overlap 2102.13 cash and the 2103.5 ES SPOT held as well. Once the weekly pivot ,2106.7 was taken out, the march to the a.m. high ensued. The loc (line on close) high came in at the 2112 SPOT and the extreme was 2112.5.SEE 10:31.

This price, 2112 has been the TOP of a well formed 3 day bracket created by last WED’S dump back through 2112 spot -see 2:40 p.m. on 2-25-2015… So now the BULLS get another whack at the pinata and must move to all time highs in order to ERASE the BLOOD RED count on the 10 min SPX. The first MUST for the BULLS is to KEEP 2112 CONVERTED to support and then proceed PAST a double top MOE –I use 2 handles MOE — and then proceed forward towards an area where SO MANY EYES ARE GLUED you would think a remake of THE FLY was coming to a theater near you.THIS IS WHY YOU MAY WANT TO CONSIDER THE FOLLOWING :

ALWAYS MARK DOWN THE WEEKLY PIVOT

ALWAYS MARK DOWN THE DAILY OPENING

BUT FOR GOODNESS SAKE EXTRACT THE PRICE

Here :
OCT 7 , 2014 —good morning – today is series s1H and the SPILL is 79 down with 21 UP.Yesterday took some of the air out of the 51 handle bounce.The market is trying to decide rather 1926.03 cash is a larger a wave and this bounce the larger b wave, our favored lean, OR did the bears do another soap drop at the 1926.03 low .WHATS AT STAKE??

It appears that the lawsuit that alleged Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL), along with Intel Corporation (NASDAQ:INTC) and Adobe Systems Incorporated (NASDAQ:ADBE), for colluding to push salaries lower, is reaching its conclusion. According to a report published on Reuters, US District Judge Lucy Koh, who is presiding the case, appeared contented with a $415 million offered settlement on Monday’s hearing.

Certain tech workers were the plaintiffs in this case. The workers claimed the defendant (the above mentioned tech companies in this case) had entered into an agreement with each other, wherein neither company would poach the others' work force, due to which employees would lose the leverage to negotiate higher salaries. Kelly Dermody, who represented the workers, seemed satisfied with the developments, and stated she and her client were “pleased” with the Judge's presenting no objections with regards to the settlement.

The Lawsuit, first filed in 2011, has received much attention by the media since its launch. This is mainly on account of the gliding possibility that the settlement may amount to a massive number. The lawsuit also allowed the media to monitor some of the biggest tech companies much closely. Accordingly, Apple's late founder Steve Jobs, in an email exchange with Google’s CEO Eric Schmidt, had discussed the strategy to refrain key engineers in both companies from jumping shift.

Although Judge Koh hasn’t issued a formal approval as of yet, she has scheduled a hearing in July, wherein the $415 million agreement will likely be finalized. In addition to this, the Judge has ordered to send notices of around 64,000 employees set to be covered by the settlement. As per a court filing, on average, each employee will be paid an estimated $5,077.72.

Prior to this, the Judge had overruled a proposed $324 million settlement on account of its being less than the acceptable level in these circumstances. During the previous hearing, Judge Koh cited a 2013 settlement involving Walt Disney Co and Intuit Inc., and added that Google and Apple employees earn less than those of Disney on the basis of total revenue made by the respective companies. Judge Koh had stated that a settlement figure should be kept at, at least $380 million.

The settlement's approval will be beneficial to the tech companies as well, since the case, if presented before a jury, could have resulted in $9 billion damages – given that there is substantial evidence of anti-trust laws. Google and Apple shares were down by 0.35% and 0.29%, respectively, in pre-market today.

Over-the-Top Growthby Susan Abbot Gidel : Tuesday 10:30:24 CT

Categories:
Commentary

Over-the-Top Growth

By Susan Abbott GidelMarch 2, 2015

(All times Eastern)

On the heels of another record-setting day for the Dow and the first blip above 5,000 on the Nasdaq for 15 years, be on the lookout for unexpected news concerning the potential for over-the-top growth on Tuesday, March 3, perhaps from Europe. Jupiter, the planet of growth and excess, makes an extremely easy connection with Uranus, the planet of the unexpected, at 7:25 am (midday in London).

Joining in on the big-planet party are three others—the Moon (emotions), Venus (money) and Mars (action). The most potent time for all these planets to chime in together is 10:52 am.

In an article Monday, Sorkin outlined Buffett’s criticism in the letter, including investment bankers’ inclination to manipulate prices and deals to generate profits for themselves.

“The Street’s denizens are always ready to suspend disbelief when dubious maneuvers are used to manufacture rising per-share earnings, particularly if these acrobatics produce mergers that generate huge fees for investment bankers,” Buffett wrote in his letter.

Despite his negative views on these “money-shufflers,” Buffett has done plenty of profitable business with banks in decades of investing. Sorkin noted that he’s also spoken highly of several Wall Street CEOs and bankers, including Blankfein and JP Morgan’s Jamie Dimon.

When asked about his comments, Buffett told the New York Times that his comments were meant to educate shareholders, but weren’t personal.

Just before the U.S. Senate released its report at the end of 2014 on the CIA’s use of “harsh interrogation” tactics against prisoners, the question was whether or not the report would provoke a public backlash against torture. The answer is no.

Morning Headlines:

-Midwest is slightly drier today. Abundant rain and snow in southeastern areas mid week will improve moisture for wheat. The 6-10 day outlook is warmer in western areas. The 11-15 day outlook is wetter in northwestern areas. Temperatures are warmer in southern areas.

-The Plains are slightly drier Wednesday. Snow in south central areas will further improve moisture for wheat. The 6-10 day outlook is warmer in central areas. The 11-15 day outlook is slightly wetter in southern areas. Temperatures are unchanged.

-Florida is wetter in northern areas in the 6-10 day period. Frost threats will remain low through early next week. The 6-10 day outlook is wetter in northern areas. Temperatures are unchanged. The 11-15 day outlook is slightly drier. Temperatures are unchanged.

-Delta is slightly wetter in central areas in the 6-10 day period. Abundant showers across the region mid week will further improve moisture for wheat. The 6-10 day outlook is wetter in central areas. Temperatures are slightly warmer. The 11-15 day outlook is slightly warmer.

-Argentina is drier in southwestern areas in the 6-10 day period. Rains in northeastern Cordoba and Santa Fe will maintain wetness concerns, while rains in Entre Rios and northeastern Buenos Aires will improve moisture. The 6-10 day outlook is drier in southwestern areas.

-Brazil is wetter in northern areas in the 6-10 day period. The upturn in rains in southern Mato Grosso, Parana, and Mato Grosso do Sul will slow soybean harvesting and safrinha corn planting, although no major wetness issues are expected. The 6-10 day outlook is wetter in northern areas.

-No changes for Europe. Moisture will remain short across central and southwestern Spain, eastern Germany, Poland, and Czech-Slovak Republics. Meanwhile, wetness will build further in Italy, Former Yugoslavia, Romania, and Bulgaria.

-No changes for FSU. Showers in south central and southwestern Ukraine and western Central Region will further improve moisture, but some dryness will continue in northwestern Ukraine, Belarus, North Caucasus, and Volga Valley.

-No changes for China. Continued active showers in south central and southeastern Yangtze Valley will increase wetness concerns for rapeseed. Meanwhile, dryness will build further in south central North China Plain.

-No changes for North Africa. Showers will maintain wetness concerns in northeastern Algeria, but dryness will continue to expand in western Morocco.

– No changes for South Africa. Showers in the 6-10 day period in eastern areas would improve moisture, although the rains will be too late to benefit corn. Dryness will continue in north central and western areas.

The National Security Agency (NSA)’s Information Assurance Directorate has released a report on Defensive Best Practices for Destructive Malware. This report details several steps network defenders can take to detect, contain and minimize destructive malware infections.

US-CERT encourages users and administrators to review the NSA report and ICS-CERT TIP-15-022-01 for more information on destructive malware.

McDermott International (NYSE:MDR) reported its financial results for the fourth-quarter of fiscal year 2014 (4QFY14, ended December 31, 2014) after the closing bell in New York on Wednesday. The Houston, Texas-based company reported earnings per share (EPS) of 3 cents, which outperformed consensus estimates of loss per share of 6 cents. Meanwhile, revenues increased 56% year-over-year (YoY) to $806 million, which outperformed Street’s estimate of $726 million by nearly 11%. The Ichthys segment was the primary catalyst behind the growth in topline, as segment revenue increased 120% YoY in Asia-Pacific (APAC) region, while revenues of the Americas region increased 69% YoY, and the Middle East (ME) region experienced a 7% YoY decline in revenue.

The ME and APAC region were profitable, while the Americas region reported a slight loss, as margins were impacted by undisclosed fourth quarter pension adjustments. Operating cash flow also improved to $119.3 million, as compared to an operating cash outflow of $19.4 million during the third quarter.

The company recorded bookings of $423 million during the fourth quarter, which was significantly higher than $330 million during Q3. This resulted in a book-to-bill ratio of 0.5x, which was lower than Street’s estimates.

The international construction, installation, and procurement company also provided a strong revenue guidance, as it reported revenue guidance of $3.3-3.6 billion, as opposed to consensus estimate of $2.79 billion. The company also expects this year’s earnings before interest and taxes (EBIT) of $67.5 million at midpoint, which is also slightly higher than the consensus estimate of $65 million. However, the EBIT doesn’t include the $30 million expected restructuring charges expected to be incurred this year.

Analysts at UBS AG have termed the quarterly results solid, as the company reported positive cash flows despite continued execution of restructuring by the company. It has also continued to move away from legacy projects. In addition, the company management is focused toward a strategy of selective bidding, and has also initiated a two-year plan for a cost saving of $100 million.

Operationally, the company displayed solid improvements, and this year’s EBIT could surpass expectations, according to Steven Fisher and his fellow equity research analyst team at UBS. However, analysts are concerned about next year’s earnings. The analysts believe any upside to the stock will be limited while the backlog is declining. The sell-side firm also reduced this year’s earnings estimate to include the impact of a higher tax burden on the company.

Overall, the company receives coverage from 18 analysts across the Street with an average price target of $3.78. Only two analysts rate the stock a Buy, and three analysts recommend a Sell rating. Following the quarter results, analysts at UBS raised the price target from $2.40 to $2.75. John B. Rogers, equity research analyst at D.A. Davidson & Co., maintained a Neutral rating on the stock, and increased the price target from $2.50 to $3 following stellar quarter performance.

In May 2013, the Co-op Bank shocked the markets after it reported a £1.5 billion capital black hole. The revelation forced the Co-Operative group, until that moment the main shareholder, to seek a bailout from private investors.

In April 2014, the independent report by Christopher Kelly, said the Co-op Bank was a “sorry story of failings in management and governance on many levels.”

That same month, Lord Myners announced he was quitting his role to help turn around the group and the bank as it was likely that the board would reject his proposals.

“Radical decisions on governance need to be taken soon – and with resolution – if the Co-op, as my mother knew it, is to be saved,” he said at the time.

“The reforms I have set out are fully compatible with the core values and principles of Co-operative ownership. I have no interest in advocating the adoption of a PLC model, as some of my critics have claimed. But I do want to see a governance structure that works; the present one has lamentably failed. The decision lies in the hands of elected democrats. I have done all I can do.”

What we have here is a clash of cultures between PLC people and the Co-op people. Euan is a PLC animal and he is used to responses on a timescale and of a type that the Co-op isn’t used to. We have tried this in the past, to bring people in from outside at a senior level, and it has never worked. Because they have not grown through the culture they try to make the beast dance in a way that the beast doesn’t want to dance.

One month later, Lord Myners delivered his damning 180-page report into the Co-op Group and the Co-op Bank:

“There is no short cut to recovery from its present weakened state. It will require retrenchment and some painful choices. Financial health can only be restored through steady, step by step, rebuilding of the group’s profitability and repayment of its excessive debt.

“Because of the losses exposed last year and their severe impact on the group’s balance sheet, the high level of debt now being carried by the group has made it inevitable that the bank syndicates providing this funding will, for quite obvious reasons, continue to take the closest interest in the group making rapid progress to strengthen its governance.

“The group’s bottom-up, competitive election process provides no rigour for assessing the commercial capability levels of candidates as there is no meaningful competency bar in place. Similarly, it provides no scope to balance the capabilities and fill skills gaps.”

Pressure from hedge fund investors

Co-op will publish its annual financial results at the end of March. Another important document that investors are still waiting for is the bonus plan for its executives, which has been put on hold since the failed tests in December.

The bank changed its chairman last month. After a long courtship, the Co-op Group confirmed that the former boss of Asda, Allan Leighton, would take the helm.

Meanwhile, Booker’s contract expires in July 2015, but according to Sky News he is set to stay for another year at least. Sky also reported that Booker is facing pressure from US hedge funds that now control the majority of the shares at the bank.

A year ago this office kept thinking the 94c triple high was the Full Monty for the market, but there was one more brief spike that saw the May contract kick and scream up to 9735. This occurred on 3/26 and the close that day was at 9166, so evidence was overwhelming that the cotton market had seen its last hurrah. A lot has changed in a year, and the fact that cotton is now trading 40% below last year’s value suggests that world acreage will be cut severely.

Chart below shows the average annual futures monthly closing price and the planted acreage. World acres have swung from a low of 72.5 M in 86/87 to a high of 89 M in 95/96. Acreage changes are made due to the % price drop from a year earlier, and the average price of futures, and also current prices of alternative crops. The chart argues for world planted acreage around the 75 M level, down from 81.3 M this year. An average world yield would produce a crop of 107.7 Mb, against use of 114 Mb.

Varner View

Looking at the last dozen years, we find that cotton made major March highs in 2014, 2013, 2011, and 2008. Intermediate highs were made in 2012, 2011, 2007, and 2003. Minor highs were seen in other years except 2009. This year’s trend so far follows these other years with advances and tops in the month of March. High dates were scattered all over, from the 1st to as late as the 29th. If there is an average date it would be the 11th. This date falls near the USDA crop report. A month is an eternity in commodity trading, but once the 15th is past, traders should focus on selling into rallies.

Technicals

We continue to believe that the cotton market made its major low around 57.50 last Nov and Jan, and will not soon make a low below that price. With spot May near 65c, there is a lot of room to trade without violating that low. A long term sideways trade is the most likely track of cotton, so we will look at both sides of price to ascertain best opportunities. The 6600 spot level continues to be a long term resistance, so a short against that level may develop in the next couple weeks.

The much awaited “D” versions of Tesla Motors Inc's (NASDAQ:TSLA) Model S are finally available for European customers. The electric vehicle (EV) manufacturer recently posted on Twitter Inc (NYSE:TWTR) that it has initiated deliveries of 85D and P85D in the region.

The dual-motor powered new variants of Model S were introduced in the US market in late 2014. The vehicles turned out to be extremely popular among consumers, given their high-performance specifications. The new, faster version of Model S, P85D, derives 691 horsepower and 687 lb-ft torque through the dual-motor engine installed, accompanied with an all-wheel drive (AWD) function.

The specification, accompanied with advanced technology, enables Tesla P85D to accelerate up to the mark of 60 mph in only 3.1 seconds – better than most other cars. Since the launch, P85D has been dominant on social media platforms as users continue to upload videos comparing P85D with other sports cars. The videos have hyped up the popularity of P85D even further as it has managed to race ahead of C7 Corvette Stingray, BMW M4, and Lamborghini Aventador.

Despite the economic meltdown in the region, it still remains a significant market and growth catalyst for the EV maker. During the last year, the overall EV sales in Europe surged almost 52% to 58,600 units. Nissan Motor Co Ltd’s (OTCMKTS:NSANY) Leaf took the lead in EV sales, followed by Renault Zoe, and then Tesla Model S.

However, the growth is expected to slow down in the upcoming years if lower fuel prices are sustained in the future. According to Peter Schmidt, editor at AID: “…looking ahead at the next couple of years, I would say this is a scary time for EV makers, chiefly because as the price of oil continues to hover around levels inconceivable a year ago and with fuel prices falling month by month, those people who had thought about buying an electric car may give up when they look at motoring expenses.”

This might be bad news for Tesla as it is planning to aggressively undertake capital expenditure to expand its charging network across Europe's east coast, including Ukraine, Turkey, Russia, and Estonia. At present, there are only 70-80 super chargers installed, while Tesla aims to uplift it to 225 super charging stations by the end of this year.

The Bank of England battled against a panel of politicians today over its role in the alleged currency market manipulation scandal.

It also revealed some rather embarrassing details over its dismissed currency chief Martin Mallett.

Lord Grabiner, a prominent barrister whose report cost £3 million to put together, cleared the central bank and its employees of “improper conduct” last year, but the BoE’s Governor Mark Carney still had to face the Treasury Select Committee over what happened with Mallett.

He confirmed that Mallett conducted at least 20 examples of “misjudgements.”

No evidence to suggest that any Bank officialwas involved in any unlawful or improper behaviour in the FX market.

A substantial part of the FCA’s investigation concerns bank traders sharing confidential information, including aggregated information about their client orders, which was then used for improper behaviour. No [Bank of England] official was aware that this improper behaviour was happening.

Since at least 16 May 2008, the BoE’s chief FX dealer, Mallett, was aware that bank traders were sharing aggregated information about their client orders for the purposes of a practice known as “matching” and had concerns that regulators would take an interest in it. The practice is not itself improper but it can increase the potential for improper conduct.

In fact, Carney spent most of his time trying to highlight how the BoE is held to higher standards than what is admissable in the legal system.

“The bar is set very high. We are not asked about whether any bank official was aware of market manipulation, we’re asked about whether we are aware of activities that have the potential for market manipulation,” said Carney.

“We are judged by a higher standard than any legal standard.”

According to the Bank of International Settlements, the global FX market £3.5 billion worth of FX swaps, forwards and options as well as spot transactions daily.

FX benchmark rates are published daily. While there are a number of these benchmarks, the two most commonly used are the WM/Reuters at 4 p.m. GMT (11 a.m. ET) and the ECB one at 1:15 p.m. GMT (8:15 a.m. ET).